2001 (8) TMI 39

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..... een the receipt of interest and dividend by the official liquidator, and the expenditure which the official liquidator incurred towards maintaining his office, payment of salary to staff, legal charges, Government commission, etc. This contention is without any merit. When the official liquidator, is appointed by the company court, after a winding up order is made, the custody of the company's .....

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..... d during the period when the winding up proceedings are in progress. The duration of the winding up proceedings is uncertain, being dependant upon several factors and, until the proceedings are complete, the expenditure on establishment by way of salary to employees, legal and other costs have necessarily to be incurred by the official liquidator. All these expenses are certainly expenses witho .....

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..... tributories, for which expense has to be incurred, in continuing the winding up proceedings. The expense, so incurred, therefore, is all expense which is required to be given deduction to, for the purpose of determining the net taxable income of the company in liquidation. The Tribunal was clearly in error in holding otherwise. The questions as to whether the appellant is entitled to claim t .....

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